NEW-Miami Occupier and Pricing Trends_C&W Q3 2023 RFS

NORTHEAST DADE/AVENTURA

NE DADE DIRECT VACANCY (%) 2013 - Q3 2023

Percent

20.0%

SUPPLY HIGHLIGHTS Overall vacancy ended Q3 at 5.3%, an increase of 90 bps YOY. Direct space accounts for over 88% of the area’s vacant space with sublet options being minimal. Supply has been limited for the past few years with no new deliveries since Q1 2020. Currently 3050 Aventura Boulevard – a 113,650-sf office building – is the only project underway in the NE Dade submarket with an expected delivery date of Q1 2024. A portion will be occupied by the owner SAFRA Bank.

15.0%

10.0%

5.0%

0.0%

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

OFFICE MARKET STATISTICS | Q3 2023

Class A

Class B

Class A

Class B

Average Direct RR PSF Quoted

Total Vacancy %

YTD Net Absorption

YTD Completions

Under Construction

Existing Inventory SF

Direct Vacancy %

NE DADE OVERALL ABSORPTION, 2013 - Q3 2023

NE Dade Class A NE Dade Class B

0

113,650

983,595

3.0%

3.4%

-8,103

$57.31

SF

20,000 40,000 60,000 80,000

0

0

569,431

7.8%

8.6%

2,009

$47.10

Totals

0

113,650

1,553,026

4.7%

5.3%

-6,094

$51.42

(40,000) (20,000) 0

DEMAND HIGHLIGHTS In the Northeast Dade submarket YTD there has been 40,323 sf of leasing activity, down 65.3% from the same point last year. In 2023, 78.4% of the deals have been signed in Class B properties while only 21.6% were signed in Class A buildings. Class A and B assets experienced the major decreases in YOY leasing activity with an 86.5% and 39.1% decline in new deals signed respectively. PRICING HIGHLIGHTS Direct asking rents in Northeast Dade increased slightly quarter over quarter (QOQ) by 2.0% to $51.42 psf FSG, while YOY direct rents fell by 2.0%. Class A direct rents fell by 4.4% YOY, but since the start of 2023 the average increased 3.2% to $57.31 psf. As new construction delivers in Q1 2024, the rents should rebound and tick upward when new high-end available space enters the market.

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Class A

Class B

Class A

Class B

NE DADE AVERAGE DIRECT RENTAL RATES, 2013 - Q3 2023

Quoted Rate PSF

$0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Class A Class B

Class A

Class B

Cushman & Wakefield of Florida, LLC. / 25